December 12, 2006

Financial Service Executives Identify Breakage in the Loan Approval Process as a Major Source of Lost Revenue

Study sponsored by DocuSign reveals automating the loan process dramatically improves conversion rates

SEATTLE, WA (December 12, 2006) –DocuSign®, the leading on-demand electronic signature service, announced new research that indicates top financial services industry executives are identifying “breakage” – or the failure to convert approved loans into booked contracts – as the greatest source of lost revenue and customer conversion.

The more than 50 retail financial services executives surveyed reported that 20-70% of leads for loans and lines of credit “fall out of the funnel” after they are approved. Improving these conversion or booking rates, is probably the biggest and most tangible opportunity to increase revenue growth at low cost.

“Sales benchmarks show that an approved business line of credit can cost the lender over $500 when considering all the marketing, sales and underwriting resources and transaction costs associated with originating, qualifying and approving a loan,” said Stevie Diorio, partner at Profitable Channels which conducted the research. “And with more than 50% of those never going to contract, this is a big opportunity for financial organizations.”

Breakage in the financial transaction process was identified as a major contributor to lost revenue, but it can easily be addressed by utilizing the electronic signature service offered by DocuSign.

“The weakest link in the process is obtaining the signature,” said Tom Gonser, founder and EVP of product strategy at DocuSign. “By putting the contract execution process online, companies are able to significantly reduce the number of approvals that fall out of the sales funnel and dramatically improve their conversion rates.”

Leading financial services companies like Great Lakes, one of the largest providers of student loan services in the U.S., are already using DocuSign’s electronic signature solution to better service their customers and reduce breakage in their back-end processes. In the first two months after implementing the online loan application, more than 80 percent of the 72,000 applications received through the online process were e-signed, automatically encrypted and digitally archived using the DocuSign solution. While the driver for adding electronic signing to the loan process was to improve customer service, the organization has seen the additional benefit of mail costs dropping 75 percent for applications completed through the online process.

“By switching from a manual application and contracting process to one that is done online using web based applications and secure electronic signatures, companies can dramatically reduce the breakage that occurs at the back-end of the sales process,” said Diorio. “This automation not only speeds the process but reduces cycle times and increases sales capacity and conversion rates.”

About the Research
The research study conducted by Profitable Channels, a marketing services company focused on helping Global 2000 marketers better reach their markets and grow faster at lower costs, was designed to help sales and marketing executives in the retail-financial services industry understand the potential of their phone, web and branch assets to drive growth. Profitable Channels conducted phone and web interviews with 50 executives in the retail-financial services industry and analyzed industry trends and customer behavior within the industry. The results of the study provide investment guidance on how to generate the most growth from these assets in the short- and long-term. The research findings were disclosed in a webcast entitled “The Four Best Ways to Turn Your Phone, Web and Branch Assets into Growth Engines” held in early November. To obtain a copy of the research report or webcast recording, call 866-219-4318.

About DocuSign
DocuSign offers a web-based electronic signature service that provides the simplicity, speed and security required to deliver, sign and store documents. Designed from the ground up for business-class usage, this service integrates the technical infrastructure and legal compliance needed to operate an end-to-end electronic signing service that replaces the old pen and paper process. DocuSign customers span a variety of industries and range from the largest corporations to the smallest branch offices. These customers are enjoying quantifiable benefits with DocuSign, including removal of costs, increases in revenue, and acceleration in business velocity. DocuSign also offers a direct positive impact on our global environment by reducing paper consumption and transportation emissions. For more information please visit www.docusign.com. DocuSign and the DocuSign logo are registered trademarks of DocuSign, Inc.